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Rwanda, Germany sign Rwf90 billion financing agreement

Tue, 13 Apr 2021 Source: newtimes.co.rw/

Rwandan has secured €78 million (Approx.Rwf90 billion) grant from Germany to support decentralization, good governance, export promotion and vocational training

Dr. Thomas Kurz, the Ambassador of the Federal Republic of Germany to Rwanda, said the financing and technical cooperation agreement is the outcome of the inter-governmental negotiations that were concluded last year between our two governments.

At least €59 million of the grant agreement will be provided through KFW Development Bank to support various initiatives including technical and vocational training, promotion of export-oriented small and medium enterprises (SMEs) through the support to the export credit facility managed by the Development Bank of Rwanda (BRD).

The grant will also be used in promotion of green investments as well as ICT support.

The remaining €19 million will be channelled through GIZ—the German development agency — to support decentralization and good governance, prevention of sexual and gender-based violence among others.

Dr. Uzziel Ndagijimana, the Minister of Finance and Economic Planning, said the financial support extended to Rwanda will support key areas that are critical to the attainment of the National Strategy for Transformation (NST1) objectives.

“This support comes at a critical juncture given the effects Covid-19 has had on our social-economic advancement. We look forward to boosting these important areas that are in line with our National Strategy for Transformation. We thank Germany for the strong cooperation and solidarity especially during the Covid-19 pandemic,” he said.

The German Ambassador to Rwanda Dr. Thomas Kurz stressed that the agreements underline the long-standing and proven cooperation between the two countries based on friendship and mutual trust.

“Germany is committed to support Rwanda in its economic recovery process and the implementation of NST 1 in order to reach the SDGs and to leave no one behind,” he said.

The Division of Labour allows Germany development cooperation programme to be active in education (including TVET), decentralization and good governance, private sector development and youth, Public Financial Management (PFM) and financial development.

Germany also supports regional projects including the Centre of Excellence for Health, improvement of the climate investment, microfinance sector through The Microfinance Initiative for Sub-Saharan Africa, International Conference on the Great Lakes Region (ICGLR) and the energy sector.

Source: newtimes.co.rw/